Team Blitz India
NEW DELHI: Malaysian palm oil extended losses to a fourth session on Feburary 2 set for their worst week in nine months after top buyer India sought to cut vegetable oil imports.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange fell 18 ringgit, or 0.47%, to 3,780 ringgit ($799.83) a metric ton by midday break.
The contract has declined about 5.9% so far this week, on track for its sharpest weekly decline since May 2.
The overarching issue is that the edible oils market is entering a period of low demand, said Mitesh Saiya, trading manager at Mumbai-based trading firm Kantilal Laxmichand & Co.
India would step up efforts to boost local oilseed production, the Finance Minister Sitharaman said as part of plans to cut pricey imports of vegetable oils from the world’s top edible oil producers.
Palm oil is affected by price movements in related oils as they compete for a share in the global vegetable oils market.
Chinese demand will be a key concern going forward, Saiya added. “The Lunar Festival buying seems to have concluded, and the focus now shifts to China’s economic situation and what they do post festival.”